Reserve Bank of Australia Says Case for Big Rate Hikes 'Diminished'

The transcript discusses the current state of interest rates, emphasizing the need for smaller adjustments as rates approach a normal setting. It highlights the considerations for the next board meeting, where a decision between a 25 or 50 basis point increase will be made. The discussion also covers global economic risks, price and wage setting behaviors, and household spending responses. As interest rates rise, the necessity for large adjustments diminishes, and the focus shifts to monitoring economic changes.

How has the resilience of the economy affected interest rate adjustments?

What is the significance of moving interest rates back to a normal setting?

What does the speaker mean by the 'case for large adjustments in interest rates has diminished'?

What factors are influencing the decision to adjust interest rates?

Discuss the implications of higher interest rates on household spending.